THE REAL ESTATE TRANSFER TAX

Abstract

The article discusses the role of taxation on property transfer by ITBI in Brazil in the light of international experience, analyzing its main characteristics and legal challenges. Although real tax revenues have tripled over the last decade due to increased real estate transactions, tax rate increases and improved tax administration, many countries achieve higher tax revenue indicators than Brazil because they have higher tax rates (including selective and progressive tax rates, which are prohibited in Brazil), and mainly an expanded calculation base covering vehicles, rents, financial assets, among other legal acts of registration and transfer. The article also showed that ITBI has been an important revenue source in small municipalities with a relevant agribusiness sector, serving as a source of information for rural land trade. The article concludes by proposing a tax reform that makes the tax progressive, that it can be used to combat real estate speculation and that it has its broad calculation base for the registration and transfer of other real assets.